Note: The following gadgets are ranked as they occured on several forums and other listings.
First, let's get on with the runners up.
All CPU Meter Gadget
This gadget is basically a mini "Task Manager" in one compact display (I don't have this gadget yet, but I'll look it up later)
Windows Media Center Gadget
A gadget common to people who have TV Tuners installed on their computers, and those in countries where the Windows Media "free internet TV" is available.
Remote Desktop Gadget
With this gadget you can access Windows seven Remote Desktop options in a breeze.
iPhone Battery Gadget
The iPhone Battery maybe cool to look at as it can be themed with a wide range of batteries, but as far as functionality...
Yahoo and Google RSS Feed Gadgets
Very cool and useful gadgets, and has come in so close to being one of the three "most popular gadgets" for Windows 7 and Vista.
CoreTemp
This gadget, which also came along so close, efficiently watches your CPU heat level, aside from being really cool to have.
3rd Place - Analog Clock and Calendar Gadgets
Some will say they don't need an analog clock since Windows already have a clock in the system tray...most (including me) think that this is a rather "cool to have" addition to the sidebar.
2nd Place - Twadget "The Twitter Gadget"
I mean, what do I need to explain. Every forum and listing I've seen puts this "Twadget" always on top. I'm not much of a Twitter person, but I can symphatize why this is popular.
1st Place - CPU Meter
The only thing that beats Twadget to being the most popular Windows 7 gadget is the CPU Meter.
Besides being cool to look at, it tells you the current load of your CPU in a little very unobtrusive gadget on the sidebar. I say it is very useful for people who are hypocritical when it comes to their computer's performance, like me.
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